Scottish Trust Deeds and Property – FAQs

Scottish Trust Deeds and Property – FAQs

When people are looking for property-related advice and answers in Scotland, they want to know whether they would lose possession of their property or lose their home after sometime post ownership. The homeowner could have spent lots of money or restoring and repairing the aesthetics of the house whenever needed; however, a single financial crisis can put all these efforts into danger. On the other hand, if a person is living in a rented house, then he would always have doubts relating to how his homeowner would react if he comes to know that the tenant has been in constant touch with the Scotland Trust Deeds.

To be honest, it is not mandatory that the tenant gives details about the Trust Deeds to the landlord. There is no obligation whatsoever. However, when the tenant is moving into another rented property, then the tenant would not be able to scrape through the credit checks made by the rental agencies.

During arrangements of Trust Deeds, the properties of parents will not be taken into account; however, it could be included only if they are fine with the inclusion. The Trust Deed is based on the assets that are owned by the particular individual.

The Scotland Trust Deeds give the homeowners the option of not transferring the property to the trustee as part of the agreement. The homeowners can also ensure that the property is not made part of the creditors’ agreement. Though it might favor the homeowner, the creditors would usually not be as happy as the homeowner, especially if the property has some equity value. As a result, the creditors would also not agree with the Trust Deed arrangement.

Once the Trust Deed arrangement is in place, the creditors cannot run behind the owners for debt issues and they would have to deal with the Trustees for any matter relating to the property. However, to bring about such a scenario, the homeowner must transfer the property to the Trustee. The Trustee would make a valuation of the property at the time of the Trust Deed and allot a certain portion of the valuation as equity to pay off the creditors.